Core Edge Image & Charisma Institute is an information brokerage company that concentrates on the acquisition and maintenance of power and influence within the Law Enforcement and Education communities.

Tuesday, October 16, 2012

How Charismatic Leaders Increase Labor Productivity

Productivity is basically defined as the measure of “the
output from a production process per unit of input”. In labor, for example, it
is typically a measure of “output per labor-hour.” One area of great concern to
industrialists and capitalists is related to labor productivity and the impact
of the many factors around it – workplace practices, the advent of computers,
capital infusion, education and training, and many others. The main reason is the fact that while the
impact of human capital investments on the workers’ wages had been studied
extensively, there had been little information on the direct effect of human
capital on productivity. The task of charismatic leaders is to inspire
employees to raise their hourly input, which raises corporate
profitability. Measuring the impact of
charismatic leadership on productivity is challenging to quantify, but may be
better measured qualitatively.

Labor productivity

To date, however, there had been new studies conducted and
published. These studies examined the link between labor productivity and a
variety of workplace practices, capital and computers, both in the
manufacturing, and non-manufacturing sectors.
In the conducted studies, the other issues factored in included the size
and age of the business, material inputs, capital stock, workers’ experience,
and capacity utilization.

Findings

The studies were done to check the factors that determine
labor productivity for a given period, employee competency, equipment, and workplace
practices. They also included computer use, human capital investments, high
performance work systems, profit sharing, and recruitment practices. One
standout data, however, showed that increasing the educational level of
employees by at least a year increases productivity as well. (8.5% in
manufacturing and 13% in the non-manufacturing sector). Under the charismatic leadership model,
researchers note the emotional inspiration endowed by employees when a
charismatic leader is at the helm. In this sense, employees are not mere worker
bees, but part of an overarching mission that has been clearly stated and each
employee is aware of his individual contribution.

Training and decision-making

Studies demonstrate that formal training (done offsite,
meaning from schools etc.) increased productivity in manufacturing. Computer
savvy also enhanced productivity, especially in the non-manufacturing sector
(sales, services, etc.). Other findings include that unionization or employee
participation in decision-making also raised productivity. Also, it was found
out that TQM (total quality management) system did not have much significant
effects on productivity. Rather, it was raising the proportion of workers in
making decisions in the work place (regular meetings, etc.) that showed a
positive impact on labor productivity. In addition, investments in education
and training generate higher productivity. Moreover, it promoted higher wage
growth. Studies have shown that raising the workers’ educational level resulted
in approximately 8 to 13% higher labor productivity. Charismatic leaders encourage high employee
participation and self-development for the good of organizational objectives.
The belief that employees acting in their own self-interest for a greater
quality of life will not only increase corporate profits, but encourage employees
to become more competent “knowledge workers.”

Profit-sharing

In manufacturing plants with profit-sharing schemes for
non-managerial workers, there was a 7% higher labor productivity shown compared
with their competitors in the same field. Those with R & D (research and
development) had an average 6% increase.
In effect, the studies showed that profit-sharing extended to
non-managerial employees had increased productivity more than what the
profit-sharing scheme with managerial workers did. In short, the more “skin in
the game” for employees, the greater the buy-in. Charismatic leaders encourage
personal ownership of a mission. Ownership and performance based compensation
is the hallmark of charismatic leadership.
The greater the productivity of the employee, the greater the inducement
for charismatic leaders to encourage corporate ownership. In a global economy,
where employees act as “free agents,” knowledge workers have to be provided
greater incentives to keep from taking their talents elsewhere.

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About the Charisma Expert

As a shy and demure child, I learned the importance of power and influence. The charismatic people I admired, never ran from anyone and always commanded a great deal of respect. I wanted to discover these hidden secrets. And now that's all I publish in one form or another.